The objective of this phase II study is to assess the efficacy of troglitazone in achieving glycemic control in diabetes by comparing the fasting serum levels of hemoglobin A1c (HbA1c) and glucose (FSG) in patients treated with placebo or troglitazone, 100, 200, 400, or 600 mg QAM for 6 months. The putative advantage of this drug is that there have been no reports of hypoglycemia from use of troglitazone. This is consistent with its action as an insulin sensitizer rather than as an insulin secretagogue.